Stocks in Germany Hit 9-week High

The DAX Index decreased 113 points or 0.43 percent on Thursday to close at 26325 points. The decline was led by Rheinmetall (-16.46%), Infineon (-8.63%) and Siemens Energy (-5.04%). On the upside, the strongest performers were Zalando (4.34%), Bayer (3.61%) and BASF (3.31%).

Frankfurt’s DAX 40 reversed earlier gains on Thursday afternoon, falling 0.4% to close at 26,330, after reaching an intraday record of 26,693, amid heavy selling in technology and defense stocks. The global chip rout spread to Europe as investors assessed the potential implications of the Democrats’ sweeping victory for the expansion of AI data centres. Infineon Technologies plummeted over 10% and AI-related Siemens Energy dropped more than 5%. Meanwhile, defense giant Rheinmetall plunged over 16%, after issuing its second profit warning of the year, citing order delays despite reporting strong quarterly results. Renk also sank around 6%, as higher impairment losses tied to Germany’s scrapped F126 frigate programme drove profits lower despite stronger revenue and orders. Among other losers, Deutsche Telekom fell 2.2% after announcing a €2 billion share buyback that disappointed investors. On the upside, Zalando (4.9%), Bayer (3.8%) and Fresenius Medical Care (3.7%) advanced the most.

Frankfurt's DAX 40 rose by 0.7% to around 26,650 on Thursday, surpassing the previous record high set in August and extending the previous session's rally. Investor sentiment remained positive amid renewed risk appetite following the US midterm elections, with lower oil prices and bond yields providing additional support. Attention also remained on the ongoing earnings season. Consumer, banking and automotive stocks led the gains, while technology and defence shares underperformed. Among individual stocks, Zalando (4.7%), Heidelberg Materials (3.9%), MTU Aero Engines (3.5%) and Daimler Truck (3.5%) posted the biggest gains. Rheinmetall plunged more than 16% despite strong quarterly results, after cutting its earnings outlook for a second time due to delays in the Boxer vehicle programme and artillery ammunition testing. Deutsche Telekom fell 1.4% after announcing a €2 billion share buyback that disappointed investors.